Operational Efficiency

How to Calculate Your Restaurant Inventory Par Levels

Your restaurant’s inventory par levels and food costs go hand in hand.

It’s one of the hardest things to juggle… Having enough inventory to meet demand each week, but also keeping it low, as to avoid stockpiling or food waste.

We mentioned this in our last article, but keeping track of inventory (and your par levels) is essential to the success of your restaurant.

Lower inventory levels help:

Ben BaggettHow to Calculate Your Restaurant Inventory Par Levels
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What is Food Cost Variance and How Do You Control it?

How often do you check the prices of your ingredients?

Every delivery? Once a week? Once a month? You’re expecting your food cost to be around a very specific number. Your supplier didn’t mention any major changes in price, so why should you have to worry? You’re getting a good deal after all, right?

But prices are seasonal, and will often change. Small increments here and there. Sometimes they may go unnoticed. Sometimes you may catch them.

In an ideal world, your food cost would be exactly what you expect every single time. But unfortunately, that’s not how the supplier industry works.

So what is food cost variance and how can you keep it under control? Below we’ve outlined what food cost variance (as called cost variance) is and a few ways you can keep it under control.

Ben BaggettWhat is Food Cost Variance and How Do You Control it?
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Restaurant Food Waste: The Silent Killer

You’re busy.

Well, ever since you opened your restaurant, you’re never not busy.

You’re being pulled in a million different directions at all times. You’re covering for a waiter who skipped his shift. A customer is causing a scene. A fight just broke out in the kitchen.

With all that going on, you just haven’t had the time – or energy – to focus on reducing your restaurant’s food waste.

You’re not keeping track of your orders. Instead, you’re just placing the same ones over and over. Who has time to analyze all that stuff?

Well, when you don’t analyze that “stuff”, you’re throwing out hundreds of dollars a week in wasted food.

And you have nothing in place to help with your restaurant food waste management.

But, you can reduce food waste in your restaurant in a ton of ways, including inventory management, smarter ordering decisions, and more.

Stop letting restaurant food waste kill your profits.

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Danny BarryRestaurant Food Waste: The Silent Killer
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Infographic: 5 Processes to Shred Your Food Costs

According to the National Restaurant Association, the restaurant industry netted almost $800 billion in sales in 2017.

So.. why are you still struggling to turn a profit?

It’s probably because you’re not taking care of your food costs.

Make a change and save your restaurant.

Here are a few places to start:

Danny BarryInfographic: 5 Processes to Shred Your Food Costs
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The Restaurant Expansion Checklist

So you’re thinking about opening a second restaurant.

You feel ready for expansion. Sales are good. Profits seem up. And you’re ready to show a whole new market what your food can do.

But there are some big questions you need to ask yourself before you get started.

Danny BarryThe Restaurant Expansion Checklist
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